Agriculture Minister: Tariff Removal Delayed by Chinese Steel, Aluminum Talks
The Canadian government has postponed the permanent removal of tariffs on certain agricultural products, including canola, due to ongoing discussions with China regarding steel and aluminum tariffs. Agriculture Minister Heath MacDonald highlighted these negotiations as a significant factor affecting trade relations. Canada currently enforces tariffs on Chinese metal products, citing unfair trading practices by Beijing.
Ongoing Tariff Negotiations
During a recent press conference, MacDonald confirmed that both nations are collaborating on tariff remissions related to steel. The government has extended its relief measures on specific Chinese aluminum and steel products until December 2026. According to MacDonald, “We need to further identify the situation with China” to ensure mutual satisfaction.
Canada’s Trade Agreement with China
In a significant development, the Canadian government reached an agreement with China to allow a substantial influx of Chinese electric vehicles into Canada. In exchange, China has committed to reducing tariffs on Canadian canola products. This preliminary agreement, hailed by Prime Minister Mark Carney, anticipates lowering canola seed duties from 84% to 15% by March 1.
- Effective March 1, tariffs on canola meal, lobsters, peas, and crabs will also be lifted.
- Canola seed serves as the raw material for canola oil, while canola meal is often used as animal feed.
MacDonald described the negotiations as an open dialogue, implying there are further opportunities for trade in various sectors, including energy and minerals.
Recent Developments in Agricultural Exports
China is poised to resume imports of Canadian canola seed and beef. MacDonald revealed that a Chinese importer has placed an order for 60,000 tonnes of canola seed, marking a renewed trading relationship since previous bans were imposed. Additionally, a Canadian company is scheduled to ship beef to China next week, indicating the first such shipment since a ban was enacted in 2021.
The 2021 ban followed the discovery of an atypical case of bovine spongiform encephalopathy (BSE) in Alberta. MacDonald stated that while tariffs on Canadian pork remain, discussions are ongoing, highlighting that China produces a significant majority of its pork needs domestically, covering 90% of consumption.
As these negotiations evolve, they will undoubtedly shape Canada’s agricultural export landscape and trade dynamics with China.
